The number of savings rate rises recorded on a monthly basis fell drastically in October compared to September, to sit at the lowest number seen since July. This implies that the influence of August's base rate rise is now waning, with providers less keen to compete as we approach the end of the year.
|Savings rate change analysis||Jul-18||Aug-18||Sep-18||Oct-18|
|Number of savings rate rises||90||219||309||147|
|Number of easy access rises (non-ISA)||9||34||76||28|
|Number of fixed rate bond rises||63||108||86||66|
|Average easy access rise (non-ISA)||0.14%||0.16%||0.18%||0.11%|
|Average fixed rate bond rise||0.28%||0.17%||0.15%||0.13%|
"It is clear to see that savings rate rise activity plummeted last month, by 53% no less, but it's important to remember that a large portion of September's record-breaking number of rises were heavily fuelled by the August base rate rise," said Rachel Springall, finance expert at Moneyfacts.co.uk. "As we move into the quieter period of the year, the slowdown may well continue while providers prepare to take leave for the festive season and start to wind down their activity."
It's not all doom and gloom, however, as the number of savings rate increases still managed to outweigh the number of cuts last month, at 147 to 46. This makes it the 21st consecutive month in which rises have surpassed cuts.
Once again, most of this welcome activity can be attributed to challenger banks, as Rachel noted that "only yesterday Secure Trust Bank increased its short-term fixed bonds, securing them a place within the top-10 deals of their respective sectors … The influx of rate rises to both short-term fixed bonds and indeed easy access accounts will delight savers looking for a decent return but who do not want to commit to a long-term fixed savings vehicle."
Due to ongoing economic uncertainties, it's understandable that savers remain cautious with their cash. That said, it's always a good idea to have some sort of savings pot, but to get the best deals you may want to move fast.
According to Rachel "some of the top deals can be withdrawn within a month or two, for example Paragon Bank's limited easy access account, or even within a few days, such as the easy access account from Nottingham Building Society. Keeping on top of the latest changes online and having everything ready for a quick application is therefore vital."
Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.